Sustainable Conduct – Safety for People and the Environment Overview Product stewardship goes beyond legal requirements Occupational health and safety have top priority Energy efficiency further improved The quality and safety of our products, the safe and responsible operation of our facilities and the comprehensive protection of our employees and the people who live near our sites are of the utmost importance to us. Bayer also considers environmental protection and the responsible use of natural resources to be extremely important. Responsibility for health, safety, environmental protection and quality (HSEQ schließen HSEQ stands for health, safety, environment and quality. ) lies with the member of the Board of Management responsible for Human Resources, Technology and Sustainability. Group-wide HSEQ management systems are in place and incorporated into the business processes. Responsibility for steering and control lies with two corporate functions, “Health, Safety & Sustainability” and “Quality,” which stipulate responsibilities and framework conditions, among other means through corporate policies, targets and key performance indicators (KPIs). Operational responsibility lies with the individual segments, which steer HSEQ with management systems, committees and working groups. All relevant HSEQ performance indicators from our production sites are compiled in a Group-wide Bayer site information system (BaySIS). The continuous review and revision of policies by the corporate functions, regular mandatory internal audits and external certification processes ensure that the systems at all production sites effectively meet the specific requirements in each case. The excellent performance of our HSEQ schließen HSEQ stands for health, safety, environment and quality. management systems also reduces running costs by avoiding damage and disruptions to work and production. Standards and certifications Bayer’s HSEQ management systems are based on recognized international standards. With regard to coverage based on energy consumption, more than 99% of all our production sites had an HSE management system audited by Bayer in 2017. Our Group-wide certification plan aimed to achieve virtually complete coverage in accordance with external standards in both environmental and occupational safety management by 2017. One hundred percent coverage is not feasible owing to the frequent changes in our site portfolio. 93% of our business activities in 2017 were certified externally to at least one internationally recognized standard for environmental and occupational safety management. Compliance with the statutory requirements and relevant standards is regularly audited by internal experts, regulatory authorities and external consultants. (XLS:) Download Standards and Certifications % of business activities based on energy consumption 2013 2014 2015 2016 2017 Prior years’ figures restated 1 Group values determined from 2014 onward Certification to external standards ISO 14001 certification / EMAS validation 67 86 88 92 92 OHSAS 18001 certification 54 72 72 78 91 ISO 500011 certification – 53 58 70 74 Degree of coverage with certification to at least one of the above standards 78 90 89 93 93 HSE management systems internally audited by Bayer 100 100 99 96 99 Our segments have quality management systems based on sector-specific international standards. Group-wide, coverage with this kind of certification is 75% based on energy consumption. Online Annex: A 1.4.3-1 limited assurance The Quality corporate function ensures uniform quality standards across all segments and functions along with the continuous improvement of all quality-related processes. The quality requirements derived from regulatory requirements, permits and authorizations, relevant standards of nongovernmental organizations and industry associations, and customer expectations are regularly reviewed and integrated into an internal quality management system. Compliance with the statutory requirements, relevant standards in production and registered product specifications is regularly audited by internal experts, regulatory authorities and external assessors. These audits also cover institutes sub-contracted by us, service providers and our suppliers. The quality management system of the Pharmaceuticals and Consumer Health segments forms the basis for the highest possible safety standards in the manufacturing of pharmaceuticals and medical devices, which are subject to strict quality requirements. It is based on internationally recognized standards such as ISO (e.g. ISO 9001, 17025 and 13485) and ICH (International Conference on Harmonization of Technical Requirements for Registration of Pharmaceuticals for Human Use), as well as on rules for good working practice (GxP schließen GxP is a collective term for all guidelines that govern “good working practice” and are particularly relevant for the fields of medicine, pharmacy and pharmaceutical chemistry. The “G” stands for “Good” and the “P” for “Practice,” while the “x” in the middle is replaced by the respective abbreviation for the specific area of application – such as Good Manufacturing Practice (GMP), Good Laboratory Practice (GLP), Good Clinical Practice (GCP) or Good Agricultural Practice (GAP). These guidelines are established by institutions such as the European Medicines Agency or the U.S. Food and Drug Administration. ) in the development and manufacture of pharmaceuticals e.g. Good Manufacturing Practices (GMP), Good Distribution Practices (GDP) and Good Clinical Practices (GCP). Our veterinary medicine products also comply with stringent GxP quality standards stipulated in relevant statutory requirements applying to development, approval, manufacture, marketing and safety monitoring. According to this, safety is to be ensured for the animals to be treated, people and the environment alike. Product manufacture at Crop Science is performed according to ISO 9001. All our products are authorized by the relevant national authorities and thus fulfill the respective requirements with regard to quality and user safety.